Tang See Chim
Singapore
“In this Bill, Sir, 4 1/2 pages of the Bill out of 20 1/2 pages are devoted to the definition of terms used in the Bill and almost every other clause defines one term or another. Finally, Sir, what about the agent of the corrupt person, the go-between, the abettor of the crime?”
“Sir, maybe it was a misplaced metaphor. Maybe I should say a skunk smells just as evil by any other name. This is exactly the position. There is no point your telling us that conditions have now returned to normal when manufacturers are asked to pay a higher rental. They have to compete.”
“Sir, the Minister said that he has not increased rent but he just revalued the value of the land. This is exactly the same as increasing rent. I mean you call a rose a rose. You increase the rent whether you call it the rent or call it the base value of the property. To the manufacturer, it is still the same.”
“The Senior Parliamentary Secretary said that the rent demanded by the JTC is comparable to that for private premises outside. But I think the JTC has almost a monopoly on industrial property. I just do not see how the Senior Parliamentary Secretary could make such a comparison.”
“Sir, the difference is that once they get the entry visa, they will be allowed permanent residence in the United Kingdom. Whereas here, we may allow them to enter for two weeks and after that we will turf them out. Also, may I just take up this further point.”
“Sir, I just want to take up with the Minister on the regulations he read out from the booklet. Indeed, if all those conditions are met, the person will be given an entry clearance and then he will be able to enter the United Kingdom.”
The complete record
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“Mr Speaker, Sir, property tax is leviable on all land and improvements on land. Property tax is, therefore, payable on shipyards and slipways. Under the present arrangement between the Jurong Town Corporation and the owners of the shipyards and slipways, these owners pay the property tax through the Jurong Town Corporation. Any exemption or reduction of property tax is a hidden subsidy from the Government. The shipyards and slipways have been enjoying boom conditions in the past few years and there is no reason why they should be further subsidized by Government. The Government has, therefore, no intention of exempting shipyards and slipways from property tax. PRESIDENT'S SPEECH Debate on the Address (Fifth Day) 2.37 p.m. Order read for resuming adjourned debate on Question [30th July, 1971], `That the following Address in reply to the speech of the President be agreed to : - "We, the Parliament of the Republic of Singapore, express our thanks to the President for the speech which he delivered on behalf of the Government at the opening of the Second Session of this Parliament.".'.-[Dr Chiang Hai Ding]. Question again proposed. 2.38 p.m.”
“Mr Speaker, Sir, it is not possible to quantify the benefits of the changed working hours. However, the fact that offices are now open from 8.00 a.m, to 5.00 p.m, on weekdays except Saturdays, instead of from 9.00 a.m, to 4.30 p.m. as before, means an improved service to the public in the sense that they now have more time to visit these offices to get their affairs attended to. No survey has been conducted and it is, therefore, not known definitely whether any inconvenience has been encountered by civil servants by the change. As far as can be judged, it would appear that while some civil servants did encounter some inconvenience in the beginning in adjusting to the new routine, all of them by and large are now used to the changed hours of work. CONSIDERATION OF MORE THAN ONE ITEM OF SUPPLY BUSINESS Resolved, That, notwithstanding the Standing Orders, the second and third readings of the Supply Bill for the financial year 1st April, 1971, to 31st March, 1972 and the Supplementary Supply Bill, 1971, be taken today." [Mr Hon Sui Sen]. SUPPLY BILL Order for Second and Third Readings 2.41 p.m.”
“Mr Speaker, Sir, I beg to move, "That Parliament doth agree with the Committee on the said resolution." Question put, and agreed to. Resolution accordingly agreed to. ADJOURNMENT Resolved, "That Parliament do now adjourn." -[Prof. Wong Lin Ken]. Adjourned accordingly at Six minutes to Eight o'clock p.m. WRITTEN ANSWER TO QUESTION Friday, 26th March, 1971 SWIMMING POOL IN RURAL CENTRAL DISTRICT 1. Mr Ng Kah Ting asked the Minister for Social Affairs if his Ministry has any plans for the construction of a swimming pool in a centrally located area for the use of school children studying in the Rural Central District comprising Sembawang. Nee Soon, Thomson, Jalan Kayu, Serangoon Gardens, Paya Lebar, Upper Serangoon and Punggol areas, and, if so, when the pool will be constructed.”
“Mr Speaker, Sir, I beg to report that the Committee of Supply has come to a certain resolution. Resolution reported - "That the sum of $635,962,210 shall be supplied to the Government under the heads of expenditure for the public services shown in the Development Estimates for the financial year 1st April, 1971, to 31st March, 1972, contained in Paper Cmd. 4 of 1971."”
“Mr Speaker, Sir, in considering the amendments to the Economic Expansion Incentives (Relief from Income Tax) Act last year, very careful consideration was given to incentives, and we decided upon $10 million because we thought this was a good round sum. Of course, should circumstances change, we would definitely consider either lowering it or increasing it.”
“Mr Speaker, Sir, the answer is no. Members may be aware that only last year the Government introduced amendments to the Economic Expansion Incentives (Relief from Income Tax) Act, 1967, which curtailed considerably the incentives offered to industrial investors. The major changes provided in the amendment Bill were as follows: (1) A reduction in the period of tax relief for export enterprises from 15 years to eight years in the case of exports as well as pioneer enterprises, and from 15 years to five years in the case of non-pioneer enterprises. However, in exceptional circumstances, the 15-year period is still available for very large enterprises with a capital investment of (Singapore) $1 billion or more, or those with a capital investment of $150 million of which more than half is owned by permanent residents of the republic. (2) The five-year tax relief provided for pioneer industries is now confined only to large enterprises with fixed capital investments of not less than $1 million. (3) Expansion incentives are restricted only to those enterprises which incur additional capital investment in fixed assets of more than $10 million. (4) Depreciation allowances which were allowed to be carried forward to the post-pioneer period at accelerated rates which, in effect, extended the pioneer period beyond five years to six years or seven years are now no longer allowed to be carried forward. Thus this restricts the pioneer period to a maximum of five years. Mr Speaker, Sir, the Minister for Finance has emphasised the need for selectivity also in his budget statement. The Government has been very selective in approving incentives. Since November 1970, when the new amendment Bill was brought into effect, only nine pioneer certificates have been approved.”
“It is very unlikely that this will be necessary. It may be mentioned that my Ministry has established a consultative committee with representatives from manufacturers and the Contractors' Association to review the position of cement from time to time. DEVELOPMENT ESTIMATES FOR FINANCIAL YEAR 1ST APRIL, 1971, TO 31ST MARCH, 1972 Order read for consideration in Committee of Supply [1st Allotted Day]. [Mr Speaker in the Chair] 2.47 p.m.”
“Mr Speaker, Sir, my Ministry is not aware of any real shortage of cement recently, although there have been fears expressed of such a shortage. Any threat to the smooth tempo of building construction activity is, however, the concern of my Ministry which has, therefore, investigated this matter. The alarm appears to have been created because a small proportion of clinker imports did not meet the required specifications for cement manufacture. The production of acceptable cement in one of the factories consequently fell, and this created an unnecessary panic. However, the position of clinker supplies in Singapore is quite healthy at the moment, and the three manufacturers within the industry are co-operating with one another to maintain a production level in line with the demand. It may be of interest to Members to know that the production capacity for manufacture of cement is at present one million tons per year, and this is expected to increase to 1.2 million tons by October 1971. The demand for cement in the year 1971 is expected to be in the region of about 850,000 tons, averaging 71,000 tons a month, or 2,400 tons per day. From the information provided by the industry, the manufacturers are at present supplying between 2,300 and 2,600 tons a day. This is sufficient to meet the local demand. However, our cement industry is dependent on imported clinker, and any short supply of clinker could well affect the supply position in the cement industry. Because of this, my Ministry is keeping a constant review of the position of clinker stocks. Should we find that the clinker stocks are such as to threaten cement supplies, we shall not hesitate to take immediate action to allow imports into Singapore duty free to meet the local demand.”
“Mr Speaker, Sir, I beg to move, "That Parliament doth agree with the Committee on the said resolution." Question put, and agreed to. Resolution accordingly agreed to. ADJOURNMENT Resolved, "That Parliament do now adjourn."-[Prof. Wong Lin Ken]. Adjourned accordingly at Thirty minutes past Seven o'clock p.m.”
“Sir, the provision in this subhead is for the purpose of meeting expenditure for advertising in the press and over radio and on T.V. in January, February, July and August of each year to remind property owners to pay their property tax promptly. It is true that the Property Tax Division sends out notices of assessment and that these advertisements are not really essential. However, it is considered desirable to have these reminders as an additional service to taxpayers to make it quite sure that they do not overlook having to pay in time to reduce the number of late payments, so that they need not have to pay a late payment fee. The sum of $1,500 shown in the 1970-71 estimates was provided to meet advertising charges in the press only. Up to July 1969 advertising over radio and on T.V. by Government departments was free. In preparing the estimates for 1970-71 the Property Tax Division overlooked the fact that they had to make provision to meet advertising charges over radio and on T.V., although such advertising charges had been in force with effect from 1st August, 1969. This subhead, therefore, had to be supplemented in the course of the year by a virement of $13,240, making a total of $14,740 for that year. Hence a similar provision is made for the ensuing financial year.”
“Mr Speaker, Sir, under the present system of renewal of T.V. and Radio licences, a combined licence and renewal form is issued to each and every licensee one month before the date of expiry of his licence. This gives the licensee ample time in advance to renew his licence, as it can be renewed one month before the expiry date. Where a licensee has a good reason for failing to renew his licence in time, the composition can be waived. The payment of a sum of $10 to compound the offence of late renewal is, therefore, not too harsh since the licensee has been reminded in ample time. The suggestion by the Member that the sum of the composition be reduced to $2 is, I am afraid, unacceptable because it would lose its deterrent effect. The non-receipt of a renewal form is mainly due to the failure of the licensee to report his change of address to the department. Since the licence form clearly states that the licensee must report any change of address to the department, the non-receipt of a renewal form by reason of a change of address cannot be accepted as an excuse for late renewal. In 1970 the total number of licences renewed was 190,788, and the number of cases compounded was 6,408, i.e., only three per cent. If 97 per cent of the licensees could manage to renew in time, it is clear that the three per cent had only themselves to blame for failure to renew in time, for which they suffered the penalty of the composition. If they paid the composition, they would not be brought to court. Of course, if they chose not to pay, then court proceedings would follow.”
“Mr Speaker, Sir, land acquisition is not properly within my Ministry's portfolio and I think it would be rather presumptuous for me to say anything. I would, however, point out that annual values are put into a yearly Valuation List. If a house is acquired, I think the owner would be on very firm ground in asking for compensation according to the annual value as it appears in the Valuation List. That is all I can say.”
“Mr Speaker, Sir, I think it would be foolhardy of me if I were to give Members of the House that guarantee. What I can say is that so long as the economy is buoyant and the growth rate is satisfactory, and there are other sources of raising revenue, we shall do our best to see that owner-occupiers get this concession. I think it is up to everybody in this country to work hard to ensure that the economic growth of our country is at a rapid rate so that we do not have to withdraw the concession. As to the Member's second point, he says that the rent of the houses in Sennett Estate, which is in his constituency, was not raised until the Property Tax Division raised their annual value. I wonder whether this can be true. The law, however, clearly states that the annual value must accurately reflect the rental of the property that can be fetched in the open market. If, for example, a house could be let out at $400 a month, I do not see why a house-owner should let it out at $100 unless he rents it to his own relative or to some other dependants. To that extent it is unfair to the Revenue. So the Government comes in and says, `Look, the market value is $400. Why do you let it out at $100? You must furnish a satisfactory answer. Otherwise the annual value of the house will go up." I do not really see how in the same row of houses the annual value is $2,000 for one house and $6,000 for another, as was earlier quoted by the Member. In that case I would ask him to supply me with the information and I will definitely look into the matter. Perhaps the lower annual value will go up by $4,000!”
“However, I was told by the Member for Potong Pasir that it would be a hardship for tenants because the landlords pass the property tax element on to them. I think the Member for Potong Pasir has forgotten the cause and effect of the matter. The higher valuation is only the effect of the increased rental. Even if we were not to raise the annual value of the property, the tenant would still have to pay the higher rent. In fact, what we do is to take away from the landlords in the form of property tax part of that higher rent so that they would not get the whole lot of the increased rental. Let me quote an example. If a house has been valued at $2,000 and is let out at $500 a month, the proper annual value should be $6,000. If the Government does not increase the annual value of the house, the owner will still collect the $6,000 but he will keep the difference between $6,000 and $2,000 to himself. Because the Government has now increased the annual value of the house to $6,000, it is able to collect tax on the higher rental. Therefore, there should be no hardship either for the tenant or the owner-occupier. So the landlords themselves, who have properties to let out, will get less return than they would otherwise, but this is property tax and when landlords let out their property, they are expected to pay property tax.”
“Mr Speaker, Sir, the general principle of valuation is fairly simple. The annual value of a house is the value of the rental that it can fetch in the open market. Of course, in time the annual values of houses go out of date. Therefore, a revaluation is done so that the property accurately reflects the rental that it can fetch. This is the general principle. In particular cases, like those quoted by the Members for Potong Pasir and Anson, it simply means that the rentals that these properties can fetch have gone up. Let me take the case quoted by the Member for Anson. He says that the annual valuation of his house was raised from $900 to $2,500. But let me also ask him this question: If he were to let out his house now, would he not get more than $200 a month for it? If the answer is yes, the annual value of his house will have to be raised so that it will accurately reflect that rental. I do, of course, realise that there has been a big increase in rentals. However, for owner-occupiers, there is a special concession, and they will not be asked to pay more than what they previously paid. I am sure this can be confirmed by both the Member for Anson and the Member for Potong Pasir who had some experience in my Ministry regarding this matter. I am in sympathy with them. In my own case, for example, the annual value of my house was originally only $1,320, and now it is raised to $4,200. I cannot complain about this really, because the house in which I am staying could fetch up to $600 a month with furniture thrown in. But I do not pay anything more. I still pay my old property tax because of this special concession. There is, therefore, no hardship for owner-occupiers.”
“In addition, Sir, close liaison is also maintained with the C.P.I.B.”
“Mr Speaker, Sir, the Government, of course, is always very jealous of its good name and of the incorruptibility not only of its top political leadership but also of all Government civil servants. I should have thought that the Member should have known better, and after inquiring from his friend and what he saw, he should have reported the incident to the police or the Customs Department or the Corrupt Practices Investigation Bureau. An investigation could then be conducted straightaway so that any guilty person could be appropriately punished. But coming before Parliament to make such an allegation now makes it a bit difficult for us to do anything. However, if the Member will even at this late stage supply me with the information, I shall be pleased to cause an investigation to be conducted. Generally, Sir, the Customs Department has been taking all possible steps to prevent corruption. Since last year, senior officers have been assigned round the clock to exercise on-the-spot supervision at the Woodlands customs complex. Junior customs staff are required to declare the amount of money they have with them when reporting for duty and when they go off duty. Surprise checks on customs officers are made from time to time. This is not to say that corruption is rampant. In fact, there has been no case reported for the last 12 months. The last known case was on the 28th of February, 1970, when a probationary customs officer was caught accepting a bribe of $20 and his services were terminated. Sir, circulars were also handed to transport operators warning them not to bribe customs officers. Customs officers were also instructed to arrest transport operators, drivers and attendants who attempt to offer them illegal gratification.”
“Mr Speaker, Sir, this provision is part of the total cost of a crash programme to develop the skills required for the shipbuilding industry. Some two years ago, the Ministry of Finance initiated a crash programme to train 250 workers initially in Japanese shipyards. 4.30 p.m. This was in addition to the programmes undertaken by the Technical Education Department of the Ministry of Education and the provision available under the Public Service Commission for training of workers abroad. The total cost of this crash programme was estimated to be in the region of $2� million, and this was to cover expenditure over a period of two to three years. The training programme was started in 1969, and accordingly 250 workers were sent to Japan for training with training periods of from 12 to 18 months. A sum of $500,000 was spent in 1969 and $l� million in 1970. The training programme is now coming to an end and the expenditure for the current year is estimated to be $500,000. Hence the provision. It is important to mention that with this nucleus of trained skilled workers in Singapore shipyards, it will be possible now to undertake this training in Singapore with a saving of foreign exchange costs. It is also the intention of the Government to send a further batch of some 250 workers to Japan for upgrading training in the year 1972-73. It is hoped, however, that the cost of this training could be defrayed from technical assistance from the Japanese Government as well as Japanese industries.”
“Mr Low Guan Onn asked the Minister for Home Affairs (a) if he will give the reason for the delay of over one year in the issue by the Traffic Police of a summons notice in respect of a 13-month old traffic offence; and (b) what is the backlog of such cases, and if he will take steps to remedy the, situation.”
“Mr Speaker, Sir, it is not proposed to set up a committee to inquire into the reasons for price increases in recent months. As I already explained in some detail on Friday, in Singapore where a substantial proportion of daily foodstuffs are imported, prices are subject to fluctuations in supply. For some items the price increases in December/January are seasonal, due to the festive season. Where the main fluctuations in prices are due to such factors as mentioned above, a committee on prices cannot exert any influence on prices. This point was discussed by the then Minister for Finance [Dr Goh Keng Swee] in December 1968 when the same question was raised. What is possibly more useful is the formation of a Consumers' Association to keep watch on price movements and to ensure that prices of essential foodstuffs are not manipulated by unscrupulous stallholders and shopkeepers and any such malpractices are detected and publicised. It is understood that there is a move for such an association -- the Consumers' Association of Singapore - to be registered. The Government, on its part, will give every assistance to the Consumers' Association and will do everything possible to curb unwarranted price increases. There have been some remarks in Parliament regarding the reliability of official prices used in the compilation of the Consumer Price Index. A full list of the average retail prices of essential foodstuffs is published in the Monthly Digest of Statistics regularly and the study of fluctuation in the prices will clearly indicate that official prices do properly reflect price fluctuations experienced by the public. TRAFFIC POLICE SUMMONS NOTICES (Delay in issue) 3.”
“Sir, the prices of sugar and petroleum are controlled, for example. Perhaps the Member can tell me what are the goods for which there has been an unwarranted rise in their prices. An hon. Member: Bread! ESTIMATES OF EXPENDITURE FOR FINANCIAL YEAR 1ST APRIL, 1971. TO 31ST MARCH, 1972 Order read for resumed consideration in Committee of Supply [2nd Allotted Day]. Resumption of debate on Question (18th March, 1971), "That the sum to be allocated for Head 0705 be reduced by $10 in respect of subhead 1001." - [Mr Teong Eng Siong]. [Mr Speaker in the Chair] 2.47 p.m. Head 0705 (contd.) -.”
“Sir, I think I have answered adequately.”
“I have no idea about that, Sir. Perhaps the Member could quote some statistics on this point and then we could have a comparison. But if the Member wants statistics, I am prepared to collect them and send them to him.”
“I can inform the Member that the Trade Division of the Ministry of Finance had a discussion with the Association of Bakers, and from information supplied to the Trade Division. It was shown that there had been a rise in the price of flour in the sense that the rebate for wholesalers was withdrawn with effect from the beginning of this month.”
“Sir, I am afraid the Member for Jalan Kayu has misunderstood the Minister for Finance. I have the text of the Minister's reply to the House. If the Member would like to have a look at the study, he is welcome to it. ROAD ACCIDENTS INVOLVING DRUNKEN DRIVERS (Particulars) 6. Mr J. F. Conceicao asked the Minister for Home Affairs what was the frequency of road accidents involving drunken drivers, and the number of those injured and killed in such accidents, for the year ending 31st January, 1971.”
“Mr Speaker, Sir, I will be glad to show the results of the study to Members of Parliament who would like to have a look at them.”
“It all depends on what the Member for Punggol meant by "those members". If he meant members of the public, the answer is no. But”
“Mr Speaker, Sir, the study was conducted by the Research Section of my Ministry and, apart from the normal salaries of the officers, no additional public funds were involved.”
“Sir, this is a confidential study and it should not be made public.”
“Mr Speaker, Sir, I thought I said that it was not intended to publish the results of the study made by my Ministry.”
“I can give that assurance, Sir. CONVERSION TO METRIC SYSTEM IN SINGAPORE (Statement by the Minister for Science and Technology) 3.04 p.m.”
“Mr Speaker, Sir, in all cases, investigations proceed with all due speed. But sometimes it is unavoidable that cases are held up. Of the 39 cases reported, only four are still under investigation. That is about 10 per cent.”
“Mr Speaker, Sir, in 1969, reports were made against 39 officers for inefficiency. Three of these cases were not pursued due to lack of evidence. Of the remaining 36 cases, four are still under investigation. Disciplinary proceedings were taken against the remaining 32 cases. The results were as follows: (i) eight officers were warned or reprimanded; (ii) six were fined up to a maximum of one month's salary; (iii) seven had their salaries reduced (the maximum reduction was two increments); (iv) one officer's increment was stopped for a year; (v) three officers were retired in the public interest; (vi) one contract officer had his services terminated on three months' notice; and (vii) six officers were dismissed. In the first nine months of 1970, 2t cases of inefficiency were reported to the Public Service Commission. Sixteen of these cases are still under investigation; one case was not pursued as there was insufficient evidence. Of the four cases where action has been concluded, the results were: (i) two officers were dismissed; (ii) one was retired in the public interest; (iii) one was warned to improve in his work.”
“Mr Speaker, Sir, the Jurong Town Corporation does not own any land in the Bukit Ho Swee Constituency and has no plans as yet to build flatted factories in the constituency. The Housing and Development Board, however, is at the moment constructing a seven-storey block of flatted factories at Ganges Avenue in the Bukit Ho Swee Constituency. This block of flatted factories, with an area of some 100,000 square feet, is scheduled for completion early next year. When fully taken up by industries, it will provide employment for some 1,000 workers. DISCIPLINARY PROCEEDINGS AGAINST INEFFICIENT CIVIL SERVANTS (Particulars) 15. Mr J. F. Conceicao asked the Minister for Finance if he will state the number of cases in which disciplinary proceedings were taken against civil servants for inefficiency in 1969 and in the first nine months of 1970, and what were the outcomes of the cases.”
“Mr Seah Mui Kok asked the Minister for Finance if he will ascertain from the Jurong Town Corporation if the Corporation will consider building a multi-storey flatted factory for light industries in the Bukit Ho Swee Constituency in order to provide employment for the people in that area and also to improve their standard of living.”
“Mr Speaker, Sir, a major shareholder of Eupoc Pulp and Paper Industries Ltd, has made a formal application under section 197 of the Companies Act for an investigation to he made into the affairs of the company. On the basis of the information supplied by this shareholder, the Minister for Finance was satisfied that a formal investigation was justified and has accordingly approved the shareholder's application. The Government does not, however, propose to institute any investigations of its own into the affairs of the company. Pending the findings of the investigation initiated by the shareholder, and in view of proceedings now before the courts, I do not propose to go into the circumstances under which the company has had to cease production. I would like to assure the Member that there are adequate provisions in the Companies Act to deal with any malpractice on the part of a company's directors. These provisions will be strictly enforced. Also, in the case of listed companies, the Stock Exchange of Malaysia and Singapore has a responsibility for ensuring that directors do not suppress information which is of interest to shareholders. The Member will appreciate that there will always be an element of risk associated with equity investment. Individual investors cannot escape responsibility for forming their own judgment as to the viability of a project and the quality of its management. BUKIT HO SWEE CONSTITUENCY (Building of multi-storey flatted factory for light industries) 14.”
“SAND AND GRANITE QUARRIES BILL "to provide for the licensing and control of sand and granite quarries and for matters incidental thereto, and to repeal the Sand Quarries Ordinance, 1961 (No. 33 of 1961)", presented by Mr E. W. Barker; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. PRESERVATION OF MONUMENTS BILL "to establish a Board to preserve for the benefit of the nation, monuments of historic, traditional, archaeological, architectural or artistic interest", presented by Mr E. W. Barker; read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. JURONG TOWN CORPORATION (AMENDMENT) BILL First Reading 3.16 p.m.”
“Mr Speaker, Sir, I am not entirely clear as to what the hon. Member has in mind, but the Government has no intention whatsoever of initiating legislation which will interfere with the right of private provident funds to manage their schemes in their own way. Some of these schemes are contributory, some are not. Some confer entitlement to the employers' contributions only after a definite period of service. In some funds (99 out of 107 approved funds according to the record) members already make contributions to the central Provident Fund which they can withdraw for the purchase of Housing and Development Board flats. However, if any approved private provident fund wishes to amend its rules to permit withdrawal by its members to purchase Housing and Development Board flats, I am prepared to ask the Commissioner of Inland Revenue to consider sympathetically such amendment without affecting its approved status. BILLS INTRODUCED 3.13 p.m. INSTITUTE OF EDUCATION BILL "to provide for the establishment of the Institute of Education and for matters connected therewith", recommendation of President signified; presented by the Minister for Education (Mr Ong Pang Boon); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed. STATUTE LAW REVISION BILL "to provide for omissions, amendments and additions considered desirable by the Law Revision Commissioners in their preparation of a revised edition of Acts pursuant to the Revised Edition of the Laws Act, 1966 (No. 16 of 1966)", presented by the Minister for Law and National Development (Mr E. W. Barker); read the First time, to be read a Second time on the next available sitting of Parliament, and to be printed.”
“Perhaps in a few months' time, Sir, after consultation with the various departments affected by the recommendations. PRIVATE PROVIDENT FUND DEPOSITS (Purchase of Housing Board flats) 13. Mr Cheong Yuen Chee asked the Minister for Finance, in view of the policy of the Government to promote private ownership of Housing and Development Board flats, if he will consider introducing amending legislation to allow persons who are members of approved private provident funds to use their deposits to purchase those flats without affecting their income tax liabilities.”
“Bill considered in Committee; reported without amendment; read a Third time and passed. ADJOURNMENT Resolved, "That Parliament do now adjourn to a date to be fixed."-[Mr Barker]. Adjourned accordingly at Seven minutes past Five o'clock p.m. to a date to be fixed.”
“The same argument, therefore, applies to pensions or gratuities. Those who retire prematurely will be given the option to exercise whether or not to have a reduced pension and gratuity. But both the reduced pension and gratuity will not be payable until the officer reaches the age of 50 years, or sooner if he is incapacitated. Mr Speaker, Sir, I think I have sufficiently answered the Member for Moulmein. Actually I need hardly answer the Member for Kampong Kapor, as the only point he raised was the increment in salaries. This is already in force in Government departments as well as in statutory boards. The Government, however, cannot force this upon the private sector. But the Government is doing its part, and we hope the private sector will follow its example and treat our national servicemen fairly and squarely. The Member for Kampong Kapor also talked about the probationary period. Surely, Mr Speaker, Sir, this has nothing to do with pensions. I think it is only fair that if everybody who joins the civil service is required to undergo a probationary period, then the same condition should also apply to national servicemen, even after completion of their national service, because in any case they do not lose out at all. This means that everybody goes on probation for a certain period. If we make it an exception for national servicemen, they would have an advantage. Whether or not that is desirable is not for me to say. The point is that it is better that everybody should be given the same opportunity. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill. -[Mr Tang See Chim].”
“The whole point is that it is an anomaly if an officer who prematurely retires should get pension from the day of his retirement, while his colleague in the civil service, having given full, loyal and dedicated service to the nation, should receive less than this officer who has not done that well and prematurely retires. Surely if that argument applies to pensions, it also applies to gratuities. Any businessman, banker, or economist can tell you this: $100,000 today definitely has a higher value than $100,000 in 10 or 20 years' time. If for example, an officer retires before 50 and gets a quarter of his pension, computed as gratuity, then us colleagues, who remain in the service and continue to give faithful service to the nation, are at a disadvantage. Then, at what time are we going to give gratuities to those dedicated civil servants who remain in the service? At the very time they join the service? Surely this is not right. That is why I say that the Member for Moulmein is tying himself up in knots. He just cannot understand the logic of my argument. He agrees with one line of it. It is a parallel argument, Sir. He agrees with one line of the argument, and yet he says that the parallel argument is not true. He goes off at a tangent.”
“Mr Speaker, Sir, I just cannot understand the logic of the argument of the Member. He seems to be tying himself up in knots. If he quarrels about the granting of pension as from the age of 50, all right, that is possibly a question of difference of opinion. But he does not quarrel about that at all. He quarrels about the fact that we are not giving officers a gratuity on retirement day, irrespective of whether the officer reaches 50 years of age or not. The Member sees it from only one point of view. But there is also the other point of view. He is like a horse wearing blinkers, Sir! [Interruption]”
“Mr Speaker, Sir, I really cannot see the logic of the argument of the Member for Moulmein. On the one hand, he is not quarrelling about the rationale of not paying a pension until the officer reaches 50 years of age. On the other hand, he says we must pay him a gratuity now because the amount paid today is the same as the amount paid 20 years hence. Is that the Member's argument? If so, I will borrow $100,000 from him now and pay him back $100,000 in ten years' time without any interest. If that is his argument, he should have no objection at all to lending me the money. In fact, the whole point is that $100,000 today is not the same as $100,000 in ten years' time, it grows. This is because if you put $100,000 into a bank drawing eight per cent interest per annum, then every year you will be receiving $8,000 in interest. And in ten years' time, the amount will double itself.”
“Mr Speaker, Sir, may I quote from clause 15 (1) of the Pensions Regulations which reads as follows: `An officer to whom a pension is granted under the Ordinance may, at his option exercisable as hereinafter provided, be paid, in lieu of such pension, a pension at the rate of three-fourths or any greater fraction of such pension together with a gratuity equal to such number of times the amount of the reduction so made in the pension as is specified in paragraph (6) of this regulation.' Clause 15 (2) reads: `The option shall be exercisable, and if it has already been exercised, may be revoked, not later than the day immediately preceding the date of such officer's retirement: Provided that if the officer does not exercise the option prior to the day preceding the date of his retirement, the President may, if it appears to him in all the circumstances equitable so to do, allow the officer to exercise the option at any time between the date and the actual date of award of a pension to him.' Does the Member understand that?”
“Mr Speaker, Sir, I stand to be corrected, but I do not think the Member is right when he says that an officer has to exercise his option at the very beginning of his career in the civil service. He exercises it at the end of his career. Six months before he retires, he has to give notice, and in exceptional circumstances, the President can waive that six months' notice.”
“Mr Speaker, Sir, let me reply to the Member for Moulmein first. I am afraid I will have to disappoint him. My answer is "No". If the Member can accept the rationale that an officer who retires prematurely should not get his pension until he reaches the age of 50 years, the same rationale surely should apply to the exercising of the option to have a gratuity and a reduced pension. Surely, he is not saying that $10,000 today is the same as $10,000 in 20 years' time.”
“An officer who retires prematurely and who is mentally or physically incapacitated to such an extent that he is unable to continue in any employment before he has attained the age of 50 sears may also be paid his pension from the date of such incapacitation. The Bill also seeks to provide that a police officer below the rank of Assistant Superintendent in any Auxiliary Police Force, as may be specified by the President by notification in the Gazette, may be retired and paid a pension on reaching the age of 45. This is to bring the retirement age in the present and any future Auxiliary Police Force in line with that in the regular Police Force. Mr Speaker, Sir, I beg to move. Question proposed. 4.40 p.m.”
“Clause 3 of the Bill provides that where an officer is retired in the public interest under paragraph (e) or in special circumstances after having completed 15 years' service under paragraph (j) of subsection (2) to section 7 of the Ordinance, he will not draw a pension till he has attained the age of 50. This is to ensure that an officer who retires prematurely does not in the long run benefit more than the officer who serves his full career in the public service. For instance, an officer who is retired at the age of 35 years in the public interest would, if he joined the service at 24 years of age and is drawing a salary of $1,000 a month at the time of retirement, normally be eligible for a monthly pension of about $200 plus a gratuity of $10,000. If this is paid to him from the time of his retirement at 35 up to the age of 70, which is a reasonable life expectancy, he would draw a total of $102,000 over the 35 years he is in receipt of a pension. Moreover, he would be in a position to find other employment after retirement and would benefit from the Central Provident Fund or other superannuation scheme in addition to the salary he would receive from such employment. This surely is an anomalous situation where an officer who is retired or retires prematurely benefits more than one who gives his whole working life to the public service with loyalty and dedication and retires at the normal retirement age. Provision is, however, being made for payment of gratuity to the dependants of an officer who retires prematurely and who does not survive to 50 years.”
“Mr Speaker, Sir, I beg to move, "That the Bill he now read a Second time." A national serviceman who joins Government service after having served a period of full-time national service, is now granted salary increments, on appointment, commensurate with the time he has spent in such full-time national service. The various statutory boards have also followed Government's example. This is to ensure that someone who is called up for full-time national service and later joins the service of Government or one of the statutory boards does not lose out to his contemporary who is not called up for full-time national service. This Bill, however, proposes to take this one stage further. A youth who undergoes full-time national service will also be rewarded by having such service included as pensionable service under the Pensions Ordinance, 1956, if he is appointed to and subsequently retires from Government service in pensionable circumstances. At present, the Pensions Ordinance only allows for service in a civil capacity to be included for pension purposes. The Bill, in seeking to amend the Ordinance, provides for the President to make regulations for this purpose. The period of full-time national service could be put in at any time, whether before or after the officer's appointment to Government service. This, Mr Speaker, Sir, is only fair recognition of the service in the cause of our country which our national servicemen put in. No one in his right senses would grudge this to our national servicemen.”